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VIRGINIA POWER FILES PROPOSAL TO SUPPORT INDUSTRIAL CUSTOMER NEEDS

 RICHMOND, Va. June 4 /PRNewswire/ -- Virginia Power today proposed an experimental program to custom-build steam and electric generating plants at commercial and industrial sites.
 The experimental program, which was requested by certain industrial customers, is designed to help Virginia Power retain larger customers by supplying their energy needs in a manner as efficient and economical as possible. The company today asked the State Corporation Commission for permission to enter into agreements with as many as 10 large commercial and industrial customers for plants to provide electricity and steam.
 Rates for each customer will be based on the specific services provided by Virginia Power. Each contract would be reviewed by the commission.
 "Virginia Power's ability to continue providing service to large businesses is crucial to the company's effort to offer reasonably priced electricity to all customers," said James T. Rhodes, president and chief executive officer. "This pilot program will give us the flexibility we need to continue serving these large customers. The program will provide us with a valuable tool for supplying them with economical energy and helping them use it with maximum efficiency.
 "The program will also benefit Virginia Power's other customers. By retaining major commercial and industrial customers, our company maintains its ability to provide all of its customers with economical supplies of electricity," Rhodes said. "And while our company's commercial and industrial rates are competitive, this program will give our large customers another option to help them operate as efficiently as possible in an increasingly challenging marketplace. So our proposal should help Virginia retain and attract industries that provide valuable jobs and tax revenues."
 Under the terms of the proposal, Virginia Power would own and operate the plants. Customers receiving energy from the plants would pay all construction and operating costs. The company may request SCC permission to offer the program on a permanent basis if reviews by the company and the commission determine it to be effective.
 Advanced anti-pollution equipment will be included in all new plants. In some cases, new Virginia Power-built plants with sophisticated environmental controls may replace older generating facilities that lack such equipment. Virginia Power will also work with all participants to help them conserve energy and use all forms of it as efficiently as possible.
 Some Virginia companies already own and operate energy facilities that provide electricity and steam to their plants. Additional customers have indicated to Virginia Power that they may build such facilities and rely on the company only as a backup supplier of electricity. These actions could substantially reduce Virginia Power's large commercial and industrial sales and impair the company's ability to hold down rates.
 The program proposed by Virginia Power today will enable the company either to build new plants for its customers or upgrade and assume ownership of existing self-generation facilities now owned by customers. Virginia Power believes most eligible customers will save money by relying on the company for these specialized plants rather than attempting to build and operate the facilities themselves. Several industrial firms have already asked Virginia Power to submit proposals for custom-built facilities.
 Rhodes emphasized that nothing in the proposal changes Virginia Power's policy of meeting its own need for new capacity through a balanced program of competitive purchases and company construction. "Virginia Power does not need additional capacity in the immediate future," Rhodes said. "But when it does, we will continue to use a capacity acquisition process that includes competitive bidding."
 -0- 6/4/93
 /CONTACT: William H. Byrd of Virginia Power, 804-771-6115/


CO: Virginia Power ST: Virginia IN: UTI SU:

TW-KD -- DC026 -- 5529 06/04/93 15:04 EDT
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Publication:PR Newswire
Date:Jun 4, 1993
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